ACA Premiums Increase for Many Reasons
Across the U.S., insurers have filed their 2017 rate requests and many people are asking, “Why are healthcare premiums for individual plans on the rise?” There are many factors that go into calculating rates, as detailed in a recent Motley Fool article, including the amount of services used. Since the start of the Affordable Care Act those with insurance are using more services than premiums cover. Although insurance companies nationwide expected an influx of people who would require additional care, the volume far exceeded expectations and fewer younger, healthier individuals enrolled than anticipated to counter these costs. In 2014, consumers used $2.5 billion more in services than premiums covered according to ModernHealthcare. In the last two years, BCBSAZ lost more than $185 million offering plans associated with the Affordable Care Act.